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Burger Beacon Virtual Franchise Model: An Overview

It is clear that customers today prefer to have food delivered to their homes, already prepared and ready to eat. The food delivery business in India has seen tremendous growth in recent years, driven by a rapidly expanding middle class and increased adoption of smart phones and digital payment systems. According to a report by Red Seer Consulting, the Indian food delivery market is expected to grow at a CAGR of 12.8% between 2020 and 2025, reaching a market size of $12.5 billion by 2025. These are very large numbers, and they present new opportunities for revenue and expansion in the industry. The demand for food delivery is so high that it is now possible to operate a successful foodservice business that relies exclusively on online orders, and this is what is known as the Virtual Restaurant Model.

Burger Beacon is now ready to launch its virtual model from June 2023.  A virtual franchise is a type of business model in which independent restaurant operators utilize their spare kitchen capacity to prepare orders for Burger Beacon. Ordering food from a virtual restaurant is similar to online shopping from retailers like Amazon. Customers are aware that the food is prepared in a kitchen, but they are less concerned about the location of the kitchen.

Burger Beacon virtual model is entirely online, with no physical location or storefront. It doesn’t need to have a dine-in area or wait staff, and the food can only be ordered through delivery aggregator apps like Zomato, Swiggy, Uber-Eats and Food Panda. We have designed a simple, economical, yet profitable online menu optimized for delivery, and can be prepared by any professional kitchen, whether it's a traditional restaurant kitchen, a dark kitchen, or a host kitchen. Our model allows entrepreneurs to test new food concepts and reach a wider audience without the high costs associated with opening a traditional restaurant.

When executed correctly, the brand licensing model is beneficial for both franchisors and franchisees. For virtual restaurant owners, it helps to reduce the costs associated with setting up a fully equipped kitchen, allowing them to focus more on creating successful online brands. For host kitchens, it provides an opportunity to generate additional revenue by utilizing the unused potential of their existing infrastructure. They do not need to invest in extra resources or worry about menu development, as their primary focus can remain on preparing tasty meals.

Study suggests that every restaurant incurs expenses such as staffing, electricity, equipment, and rent, but these resources are not always utilized to their full potential. There is a significant amount of excess kitchen capacity that can be utilized to offset fixed costs. This includes restaurants with two free workbenches, hotels that mainly use their kitchens for room service and breakfast, coffee shops with kitchens that close early, and catering companies that generate revenue primarily between 11 AM and 3 PM.

Burger Beacon virtual franchise is a simplified version of a traditional restaurant franchise, but it still involves a partnership between the franchisor and franchisee. The success of the partnership is dependent on the quality of support provided by the franchisor as well as the franchisee's dedication to providing high-quality food. Host kitchen operators must carefully adhere to the franchisor's instructions, including purchasing ingredients, preparing and packaging food.

The pandemic forced many restaurants to turn to third-party delivery apps to survive, but adapting menus for home delivery proved to be challenging. Burger Beacon team has developed a plug-and-play model that allows restaurant operators to enter the delivery market and potentially be profitable from the start. However, Restaurant owners must have the capacity and mindset to make it work, while brand owners need the right technology, expertise, and support system to build a successful virtual restaurant franchise.